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Home My WebLink About2117 ResolutionRESOLUTION NO. a \ vr\ A RESOLUTION of Pasco City Council authorizing the City Manager to sell surplus properties for the benefit of the LID Guarantee Fund and setting a minimum value for those properties WHEREAS, the City has acquired real property in the City by the foreclosure of LID assessments and by purchase of tax foreclosed properties also encumbered by LID assessment from Franklin County, and, WHEREAS, the City intends to sell these properties and reimburse the LID Guarantee Fund with the proceeds, and, WHEREAS, a minimum value of each property of each subdivision must be set to insure a reasonable return, now, therefore, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVE AS FOLLOWS: 1. The City Manager is authorized to request proposals and to negotiate a proposed sale agreement for the properties listed in attachment A hereto, to one or more land developers for a price not less than the following per lot, parcel or tract of land Highland Park Homes Addition $6,000 00 A M Wehe's First Addition $1000 00 Avery's Subdivision Block 1, Lots 11 19 $1000 00 Blocks 3 & 4 $28,000 00 Gantenbein's Addition $4,500 00 N P Plat $5,000 00 Short Plat 81-2 $50,000 00 2. In selecting the recommeded developer the City Manager may consider factors other than proposed purchase price including, but not limited to, experience and reputation of the developer, the type of structure proposed for development, the improvements to the lot at the end of construction and the terms for purchase and development of the land Any such agreements shall subject to approval by the City Council 3. Lots or tracts of land that cannot be readily sold in multiple parcels or lots to developers may be sold on an individual basis to developers and individual lot buyers without formal approval of City Council Passed by the City Council of the City of Pasco, at a regular meeting this 7th day of March, 1994 CITY OF PASCO: ATTEST: APPROVED AS TO FORM: CATHERINE D SEAMAN Deputy City Clerk Resolution No. (- I 01 Page 2 LID 109 lots/94 ATTACHMENT A Surplus Properties A.M. WEHE'S First Add. City has deeds BLOCK LOT 2 17 20 4 1 12,22 28 HIGHLAND PARK ADD. City has deeds BLOCK LOT 22 1 10 24 2 8 6 17 26 28 2 4,12 20 7 10 12,26 28 29 16 20 8 15 28 30 4 9 11 1,15 28 32 1,2 12 15 25 AVERY SUBD. 13 6 10 City has deeds 22 10 28 BLOCK LOT 1 11 19 3 1 28 4 1 28 AGENDA REPORT NO. 9 FOR City Council February 23, 1994 TO Gary Crutchfield, City Manager W/Shop Mfg 2/28/94 FROM Kurt Luhrs, Administrative Assistant Mtg 3/7/94 SUBJECT Sale of Surplus Properties I. REFERENCE(S): 1 Table of Estimated Property Values 2 Proposed Resolution II. ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATIONS: 2/28: DISCUSSION 3/07: MOTION: I move approve Resolution No , a Resolution authorizing the City Manager to sell surplus properties for the benefit of the LID Guarantee Fund and setting a minimum value for those properties III. FISCAL IMPACT: Approximately $400,000 income to the LID Guaranty Fund W. HISTORY AND FACTS BRIEF: A) The City is required to foreclose on properties delinquent in payment of their LID assessments B) Following county foreclosure on these LID properties for lack of payment of taxes, the city purchased the lots from the county with the intent to sell the properties to recuperate funds the city spent to pay off the LID debt C) At the beginning of 1994, the city purchased 220 lots and assorted unsubdivided parcels from the county, all of which had delinquent LID assessments The value of each lot is dependent upon its location, zoning and access to utilities The attached table provides an estimate of the value on a retail level and a wholesale level for each of the subdivided lots V. DISCUSSION: A) The city has various options in selling these properties One is to offer them to the highest bidder, encouraging developers to purchase the property The second option is to sell lots to individual purchasers The value of the lots when sold wholesale (in large blocks) will be lower than if they were sold individually (retail) A critical question arises when considering these two options When a large block of property is sold to a developer, the city can require that a certain level of quality and finish will occur In fact, these assurances can be tied into the contract for sale to the developer When properties are sold to individuals, ensuring that these quality standards are met can be difficult, enforcing the terms of one contract with a developer is much simpler than enforcing the terms of numerous contracts with individual landowners B) Another issue is the cost per lot There is a general perception in the public that, since the city is selling lots at a reduced rate to a developer, it would sell those lots at the same price to individuals Individual lot prices must be higher to pay for marketing, commissions, administration and closing costs (see attached table) C) The City has had success in selling lots to developers Dellinger Enterprises continues to sell manufactured homes on lots the city acquired through foreclosure These lots were optioned to Delhnger in 1991 and are sold on a quarterly schedule with a price escalation clause Lot prices to Dellinger have gone up 27% since the option was originally signed This option ends in December of this year D) Staff propose to sell the current inventory of lots to both individuals and developers Lots that may be attractive to developers will be opened for bid in groups Lots that are not in marketable groupings will be offered for sale by a real estate agent CITY OWNED PROPERTIES PROPOSED FOR SALE TO THE PUBLIC SUBDIVISION Q. LOTS ASSR'S VAL. COMRSALES Est Val,. retail Est Val. WhIsl Highhland Park* 49 $10,000 $10-$17,000 $441,000 $294,000 AM Wehe** 103 $1,750 $500-$1,250 $51,500 $41,200 Avery** 65 $500 $32,500 $26,000 Gantenbem 3 $4,500 $13,500 $13,500 N P Plat 1 $5,000 $5,000 $5,000 Short Plat 81-2 1 5 acre $50,000 $50,000 $50,000 TOTAL 221 $593,500 $429,700 COST*** .ADMIN (179,155) GRAND TOTAL $414,345 $419,700 *Retail value based on $9000 lot sale,Wholesale value based on $6000 lot sale **Retail value based on $500 lot sale,Wholesale value based on $400 lot sale *** "Est Val retail" administration cost includes 25% sales commission, $150 closing cost and $30 administration cost per lot RESOLUTION NO. A RESOLUTION of Pasco City Council autho)izing the City Manager to sell surplus properties for the benefit of the LID Guarantee Fund and setting a minimum value for those properties WHEREAS, the City has acquired real property in the City by the foreclosure of LID assessments and by purchase of tax foreclosed properties also encumbered by LID assessment from Franklin County, and, WHEREAS, the City intends to sell these properties and reimburse the LID Guarantee Fund with the proceeds, and, WHEREAS, a minimum value of each property of each subdivision must be set to insure a reasonable return, now, therefore, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DOES RESOLVE AS FOLLOWS: 1. The City Manager is authorized to request proposals and to negotiate a proposed sale agreement for the properties listed in attachment A hereto, to one or more land developers for a price not less than the following per lot, parcel or tract of land Highland Park Homes Addition $6,000 00 A M Wehe's First Addition $1000 00 Avery's Subdivision Block 1, Lots 11 19 $1000 00 Blocks 3 & 4 $28,000 00 Gantenbein's Addition $4,500 00 N P Plat $5,000 00 Short Plat 81-2 $50,000 00 2. In selecting the recommeded developer the City Manager may .. consider factors other than proposed purchase price including, but not limited to, experience and reputation of the developer, the type of structure proposed for development, the improvements to the lot at the end of construction and the terms for purchase and development of the land Any such agreements shall subject to approval by the City Council 3. Lots or tracts of land that cannot be readily sold in multiple parcels or lots to developers may be sold on an individual basis to developers and individual lot buyers without formal approval of City Council Passed by the City Council of the City of Pasco, at a regular meeting this 7th day of March, 1994 CITY OF PASCO: JOYCE DEFELICE Mayor ATTEST: APPROVED AS TO FORM: CATHERINE D SEAMAN GREG A RUBSTELLO Deputy City Clerk City Attorney Resolution No. Page 2 LID 109 lots/94 ATTACHMENT A Surplus Properties A.M. WEHE'S First Add. City has deeds BLOCK LOT 2 17 20 4 1 12,22 28 6 17 26 HIGHLAND PARK ADD. City has deeds BLOCK LOT 22 1 10 24 2 8 28 2 4,12 20 7 10 12,26 28 29 16 20 8 15 28 30 4 9 11 1,15 28 32 1,2 12 15 25 AVERY SUBD. 13 6 10 City has deeds 22 10 28 BLOCK LOT 1 11 19 3 1 28 4 1 28